VW and Ford alliance forms as threats circle

Light commercial vehicles appear the path of choice as Volkswagen and Ford commit to a "broad alliance" to boost their competitiveness.

The vehicle-makers insist a merger is beyond their present scope as they confirmed that the companies intend to develop "commercial vans and medium-sized pickups for global markets beginning as early as 2022".

They have signed a memorandum of understanding to investigate collaboration on autonomous vehicles, mobility services and electric vehicles and have "started to explore opportunities".

"Over time, this alliance will help both companies create value and meet the needs of our customers and society," Ford CEO Jim Hackett says.

"It will not only drive significant efficiencies and help both companies improve their fitness, but also gives us the opportunity to collaborate on shaping the next era of mobility."